BUSINESS NEWS

SPENDING INCREASES
Consumer spending is keeping up with consumer confidence. Retail sales figures show the last quarter to include a healthy 1.2 percent increase, which is a welcome relief after two ordinary quarters. Also, credit card usage at retail outlets increased with a 2.5 percent improvement.

SACKINGS/HIRINGS
This past year has seen some massive shifts in employment numbers among our biggest companies. According to BRW, the big hirers who substantially increased their numbers include Tabcorp (195%), PaperlinX (100%), CSL (95%), Computershare (59%), Toll (39%), Arnotts Biscuits (30%) and Wesfarmers (32%). But those who down-sized include Mayne (61%) & Foster’s (31%).

SMITH TO FLOAT
An interesting one to watch is Dick Smith Foods which the entrepreneur has signaled will be going public as soon as the structure is ready.

PETROL BOOST SALES
The record quarterly profit result from Coles Myer indicates the star performer to be Coles Express at fuel stations. Understandably Shell is equally happy with the way the recent link has continued to increase petrol sales.

BANK NUMBERS ANOMALY
The latest employment figures among the banks make interesting reading. Whereas the NAB results continue to languish despite dropping nearly 10 percent in staff numbers with more to go soon, ANZ employment has increased nearly 25 percent and still records good financial results.

BUSINESS OUTLOOK

BEST YET TO COME
The current Westpac economic survey is among the brightest doing the rounds right now. Among its many findings is that Australia’s economic growth is going strongly and is yet to peak. But as for when that may happen, there are no firm predictions.

JOBS HIGH TO CONTINUE
Australia’s job market is not only enjoying a four year high but broad business confidence will see it continue for the remainder of this year. The situation will eventually be dulled by the seasonal January low. Statistically, the market is up there will the heady days of 2000 when the Internet boom and Olympics euphoria were leading the charge. Current unemployment rate is 5.2%.

AUS DOLLAR TO RISE
The chief economist at ANZ, Soul Eslake, says his latest research indicates the Aussie dollar will rise within a few months. He is tipping over 80 cents as the rate at which it will be held for most of 2005 with even 82 cents achieved by the end of next year. He cites the US budget deficit as the main reason. Australian exporters will have a difficult year.

XMAS SPENDING HIGH
“Hold onto your hats” is the message to retailers as the economic calendar goes into the Christmas period. All predictions are for a bumper consumer spend that could set new records in all categories.

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THE OXFORD ADVANTAGE

CASE STUDY: Oxford Funds Strong Growth

A Queensland-based business operates in three main areas: wholesaling of irrigation related products, contracting of irrigation systems to builders, and wholesale sales of garden lighting, pool and pond equipment.

The business immediately began to grow and there was a healthy demand for the products. However, it needed vital capital to purchase components and meet day-to-day financial commitments.

A Debtor Finance facility was set-up with a major bank. However because a greater component of the company’s debtors were being generated through contracting, and their sales to one customer exceeded 50% of their total sales, only 33% of the total business debtors were considered acceptable to the bank.

Oxford refinanced the banks facility in October 2001 and instantly approved all the debtors, releasing considerably more working capital to substantially increase the companies’ cash flow.

The move from the bank to Oxford has proven a great success for the company. The directors now have available funds to take advantage of new business opportunities and cope with increased demands.

Sales and profits continue to grow strongly.

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To find out more about the benefits of Debtor Finance please contact Oxford direct on 1800 850 509. Alternatively visit www.oxfordfunding.com.au.

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